BEIJING, June 7 Reuters China39;s exports shrank much faster than expected in May while imports extended declines with a grim outlook for global demand, especially from developed markets, raising doubts about the fragile economic recovery.

The world39;s secondlargest economy grew faster than expected in the first quarter thanks to robust services consumption and a backlog of orders following years of COVID disruptions, but factory output has slowed as rising interest rates and inflation squeeze demand in the United States and Europe.

Exports slumped 7.5 yearonyear in May, data from China39;s Customs Bureau showed on Wednesday, much larger than the forecast 0.4 fall and the biggest decline since January. Imports contracted 4.5, slower than an expected 8.0 decline and April39;s 7.9 fall.

The weak exports confirm that China needs to rely on domestic demand as the global economy slows, said Zhiwei Zhang, chief economist at Pinpoint Asset Management. There is more pressure for the government to boost domestic consumption in the rest of the year, as global demand will likely weaken further in the second half.

Highlighting the extent of the weakness, the data shows trade was worse even than when the port of Shanghai, China39;s busiest, was shut down due to strict COVID curbs a year earlier.

The figures also add to a growing list of indicators that suggest China39;s postCOVID economic recovery is quickly losing steam, bolstering the case for more policy stimulus.

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